Banking: New Rules for Bank Audits and Appeals
A senate committee must act next: committee consideration.
While it has Republican support, bills that limit the power of financial regulators often face strong opposition from the other party and the current administration.
Scores run from -100 (strongly harmful) to +100 (strongly beneficial) for each group, combining impact, certainty, scope, and duration ratings of 1-5. How impact scoring works
Many community banks and credit unions subject to federal examination are structured as small, independently owned institutions. This bill gives them firm deadlines for exams and reports, a right to written pre-clearance advice on new products, and a new independent board to challenge examiner findings, reducing regulatory uncertainty and compliance costs for smaller institutions that often lack large legal or compliance staffs.
“A Federal financial institutions regulatory agency shall complete any examination of a financial institution, other than a financial institution subject to a continuous or resident examination program, within 270 days of commencing the examination”
Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.
Sent to a congressional committee for expert review. The committee decides whether this bill moves forward.
Introduced in Senate
The bill was officially filed and given a number. It now enters the legislative queue.
Senators Jerry Moran and Bill Hagerty introduced the FAIR Exams Act to increase transparency and establish an independent appeals process for banks and credit unions. The bill sets statutory timelines for exams and creates an Independent Examination Review Board within the FFIEC.
While the FDIC has launched its own internal Office of Supervisory Appeals, industry groups like the ICBA continue to push for the FAIR Exams Act. The bill would create a more independent review process within the FFIEC, moving appeals outside of the agencies that conduct the audits.
The Fair Audits and Inspections for Regulators Exams Act aims to create an independent review process for banks to appeal exam findings. The legislation addresses long-standing complaints about the 'management' component of CAMELS ratings and the lack of a neutral body to hear disputes.
No votes or related bills recorded for this bill yet.
Document Type
Congressional Bill
Official Title
Fair Audits and Inspections for Regulators' Exams Act
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